Nebius Group (NBIS) has fallen 36% from its near-$300 peak as an AI stock sell-off over funding concerns hit the sector. The AI cloud company builds data centers fitted with Nvidia GPU chips and leases them mainly to Microsoft and Meta Platforms. Analysts expect revenue of $3.34 billion this year and $12.24 billion next year, and Nebius has more than $40 billion in long-term commitments from investment-grade customers, with Nvidia holding a stake. Management expects $20 billion to $25 billion in capex this year, funded by debt and new stock, while the market capitalization stands at $43 billion; prepayments of around $9 billion are guided for 2026, and the company had about $8 billion in cash at the end of the second quarter. The author notes the stock trades at less than four times next year's revenue estimate, which could make it attractive to risk-seeking growth investors, though future profit margins remain hard to predict.
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| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
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